Tax Revenue Neutral

City of Locust

2025 Stanly County Revaluation

Tax Revenue Neutral

The revenue-neutral tax rate, as defined by G.S. 159-11(e), is the rate that is estimated to produce revenue for the next fiscal year equal to the revenue for the current fiscal year if no reappraisal had occurred. The rate is then adjusted by a growth rate equal to the average annual percentage increase in the tax base due to improvements since the last general reappraisal.

Step 1: Tax Levy for Current FY

Tax Levy Amount: $3,026,213

To determine the tax levy for the current year, we take the total assessed valuation, divide it by 100, and multiply it by the current tax rate of $0.36.

Step 2: New Tax Rate

New Tax Rate: $0.2736 per $100 value

To determine the new tax rate, which would produce revenue for the next fiscal year equal to the revenue for the current fiscal year if no reappraisal had occurred, we take the current tax levy (from Step 1), divide it by the new reappraised valuation of $1,106,180,072, and multiply it by 100.

Step 3: Calculate Growth Rate

2022 Growth Rate: 7.56%

2023 Growth Rate: 10.59%

2024 Growth Rate: 8.42%

Average Growth Rate: 8.86%

Step 4: Adjust New Tax Rate by Average Growth Rate

Adjusted Tax Rate: 0.2979 per $100 value